Web directories Web Analytics Learning Guitar-Making Your Own Music Learning Guitar-Making Your Own Music: 06/01/2011 - 07/01/2011Learning Guitar-Making Your Own Music

Thursday, June 30, 2011

Music Industry And Label Tour Support

Tour Support

In the music industry you need to know about tour support from you label. When making your own music ant touring their are many things to consider and know from the get go. When you first sign as a new artist, you will  need to go on tour for several reasons. Just keep in mind that do expect to make much of a profit when you are new and go on tour for the first time. With travel , hotels, food, agents, and manager, the expenses are pretty high. As a midlevel artist you will break even and maybe make a little bit of profit. Touring is very important for your career. This is so you can build an audience, sell more records, play bigger concerts,etc. Tour support is money from your label and ranges from $50,000 to $150,000. This is only if you are signed on a major label. If you are signed with an indie label the range is $10,000 to $15,000. Touring is hard to convince your label. The label will have to think that their is a good reason to tour. Keep in mind that not every signed recording artist does major tours. If you are a artist that is all about touring you best get in clause in your contract that you want to tour and if you are more of a performance based artist, you might get the green light from your label. If you have to stage presence and just record well, than just stick to recording albums and hope you sell millions. To guarantee yourself a tour, you need to break the top 40. This is called CHR. It means contemporary hit radio. If you can conquer this you will be able to tour.

Pro Tools Make Music Now Recording Studio

Tascam DP-02 Digital Portastudio - 8 Track

Audio-Technica AT2020 USB Condenser USB Microphone

Wednesday, June 29, 2011

Commercial Market Videos In The Music Industry

Commercial Market Videos

When making your own music and making videos, there is little profit in single-song videos. he reason is because these videos in the music business is for promotional use to gain exposure for your album. Historically, monies came from home video sales using music videos. These days video streaming on demand from Yahoo, AOL, and Bing. You still get royalties from this and I will discuss this in a later post. A dual disk is a CD on one side and a video on another.

Will Your Label Make A Video For Your Song

Until you have some clout and bargaining power the answer will be no way. Once you get bigger you can get two videos made per album. This is standard. The label's concern is that videos may not be useful in the future. Present day, they are not. MTV does not even play videos anymore. 

Numark MIXTRACK DJ Software Controller

ION Audio iCUE MP3 Computer Music Mixing Station with Software

Pro Tools Make Music Now Recording Studio

Audio-Technica AT2020 USB Condenser USB Microphone

Monday, June 27, 2011

Making Your Own Music And Videos


Videos that you see om MTV and VH1 are what are called promotional videos. These videos are made and paid for by the record label. In the music industry, the reason videos are made is to promote your record. You and your label don't make a profit from producing videos. The label might break even because the videos are expensive to make.


Music videos started in 1981 in America and have been around in  Europe since the 1960's. In Europe this way a alternative way to promote your album, instead of touring. In the music business, this was much cheaper than touring. In the 1950's in the United States there was something called Scopitone. These were jukeboxes that played videos that were black and white and also some color. These were make on 16mm film but vanished after a few years. Today these Scopitone's are considered collectors items. In movie theaters some short videos were shown in movie theaters.

Music Making Software And Song Recording

I recommend a few good home recording products:

Pro Tools Make Music Now Recording Studio

Tascam DP-02 Digital Portastudio - 8 Track

Audio-Technica AT2020 USB Condenser USB Microphone

Dub Turbo

Sunday, June 26, 2011

Music Software and Equipment

Music Software And Equipment

This post, I have some recommended music making software for recording. Here are some links for what you need if you want to record from home. You will have many benefits to recording from home if you have the right equipment and use it properly. Studio costs are very expensive and if you invest in proper equipment, you will save money in the long run. You can basically get all the recording equipment you need for a lot less than what you will spend for a few hours in a studio. Here are some recommended recording equipment:

Blue Microphones Yeti USB Microphone

M-Audio Studiophile AV 40 Powered Speakers

Nady MPF-6 6-Inch Clamp On Microphone Pop Filter

Dub Turbo

Sonic Producer

I hope these products will help you when making you own music. I will have more information on recording tomorrow.

Saturday, June 25, 2011

Music Making Software

Music Making Software

When making your own music an recording, it can be really pricey. If you are a band that is unsigned, you pay for everything. Making your demo is a must have for any artists or bands. To make a demo that is high quality is the key when promoting your music. There are solutions on recording your own music. I suggest some music making software that can do a great job to have a high quality demo or create your own record. I have done tons of research and there are four that I think are decent. I determined a few aspects when picking a few good ones on the market.

1. User Friendly
2. Sound Quality
3. Efficiency
4. Time Consumption
5. Price

Price is a big one and I found two that cost under $30. This is a great value for what the software offers. I have narrowed it down to four products. Check them out. The quality of these software's produce a sufficient demo for submissions to managers, booking agents, producers, and labels.

Here are four great music making software.

1. Click here
2. Click here


Friday, June 24, 2011

Webcasting, TV, And Radio Broadcasting

Webcasting, TV, And Radio Broadcasting

Webcasting is basically a broadcast over the internet. There are three types of webcasting in relation to a signed recording artist.

1. Music that is played be self-declared DJs, and by regular, over the air radio stations that actually put there signal on the internet.

2. Streaming on demand of audio or videos on the internet.

3. Artists who broadcast their concerts over the internet.

The types of webcasting numbers one and two are very straightforward. The label has rights to one and two because they are using your masters, which they control. You will still get your royalties on one and two, but not all of it. Number three you get all the profits. When making your own music and broadcasting live your label will want a piece. Just make sure that you have this in your contract. Number three, the label does not make a dime as long as it is in your deal. The label will fight hard to get a chunk.

* Here is a music making software. Click here.

Artists And Bands Websites

Artists And Bands Websites

Years ago in the music industry, websites were not as popular as today. They were considered unknown creatures and labels were registering sites without permission from the artists or bands. During the term, labels have an exclusive license to set up the artists website, and the artist is allowed to set up his "unofficial website". After the contractual term the official site rights goes back to the artist. In the music business the labels will recoupe the costs of maintaining a website and can charge you up to $25,000. When making your own music and recording with a label monetize your site with merchandise. Remember that the label will have a "360 Deal" clause in your contract and will be entitled to a percentage that you sell on your site and the official site.

* Here are some highly recommended music making software here that will save you loads of money on recording costs.

Thursday, June 23, 2011

Contractual Exclusions For TV And Film

Contractual Exclusions

If you as an artist has any clout, you can negotiate an automatic contractual soundtrack exclusion in your record deal. This had a big laundry list of clauses and will apply if you have no exclusion but the label's consent.

1. You can't perform on more than one or two selections for inclusion in the album.
2. You can't do more than one of these during any one-year period of the term. Some cases it's a limit of three cuts over the term.
3. You can't be late on delivery.
4. All royalties and advances must be paid to your label and then you get paid after recoupment.
5. If you have any leverage you can get %100 of monies on soundtrack songs or tv but usually you will get %50.
6. You must try to get the right to use the recording on one of your albums, or Greatest Hits album.
Make sure when doing your deal, that film and tv songs are a major part, because this is a great way to promote you and your songs. Plus the money is very good.

*Everyday I recommend a few music making software. Check them out.

TV And Film Contracts

TV And Film Points

Clauses or the term includes motion pictures and television contracts. Label can stop you from recording for motion picture and television without their consent when making your own music. Their can be a bit of slack from the label that will allow your to record one or two songs in a film. However, the label in will have a pretty big laundry list. In the music industry, the label will require credit on the film or tv. These days you see artist dropping songs on soundtracks all the time. Your label does not want you just recording freely all the time for legitimate reasons. So you say to yourself, how do artists get on soundtrack albums? There are two ways. Begging them and saying it is good marketing and promotion for a song to push your album. Two, force the film or tv company to give the soundtrack to your label.

*Here are two great music making software that I highly recommend.


Wednesday, June 22, 2011

Re-Recording Restrictions

Re-Recording Restrictions

All recording contracts say you can't re-record any song you recorded during the term of a deal for a certain period of time after the term. This is what is called re-recording restriction. This makes a lot of sense because you could go out the very next day after your deal is over and duplicate the same album. This is the reason for the restriction. Re-recording restrictions only apply to records, not for a film or commercial. Well the labels figured out that artist were recording for movies and commercial and not using the master. This cuts out the label so they added this re-recording restriction so they get paid. When making your own music, this means an artist can only use the master so everyone gets paid including the record label.

Tuesday, June 21, 2011

Deal Points With Record Advances Part Two

Cost Reimbursement

If the demo deal is dead and the label does not want you, you're free to go elsewhere and shop and gain some interest from another label. Remember the little bit of front money that the label gave you for the demo deal? They are going to want that back. When you sign a full deal with the label that wants you during your demo time from the first label, they want the money back. In the music business the label that signs you is willing to pay back the advance from your demo deal to the label that signed you to the deal. The cost of the advancement will be recoupable from your royalties. However, here is how you can protect yourself:

1. The money should only be paid back if you sign with another label.

2. There is also a time limit. In your demo deal, try to make the time limit a year and no more.

Non-Record Company Demos

Keep in mind that you can sign deals with producers and engineers besides labels companies. Non-record companies can also distribute your record. Since they are not mainstream deals, the rules and clauses are much different.

1. If and when you sign with a label, you will have to pay the producer or engineer back. This term is called a "override". The label will take it out of your royalties about %1 to %2 on your records. Some cases the funder producer or engineer will get a bit of your advance paid to you.
2. The funder may ask for and override on every record. This is a bit much. On a override the funder should only make back twice there investment and no more. Make sure this is in your contract with the funder.
3. The funder's royalty should only be payable after recoupment charges are made to your records. Funders for recording cost don't get an override on.
4. Try to get the label you sign with to pay the override obligation to the funder.

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Deal Points With Record Advances

Demo Deal Advances

Demo deals can be a good way to go these days. How it works is a label will pay you for your demo. It is very little but it is a start. It exchange for the company giving you money for the demo, you have to wait some time usually 30 to 60 days to find out if the label wants to sign you to a full record deal. You need to know that you have to wait until the decision is made by the current label under your demo deal before you can go to another label. You can't shop while you are under a demo deal. A shorter deal the better. If the label wants you, you're required to negotiate a deal with them. If you don't make a deal this is called first refusal or a matching right. All this means if you can cut a nice deal with another label you can't just jump on the offer. You have to go back to the first label and they have the chance to match the offer you received by the second label. During the first refusal, you will not have to come back to the first label if the second offer is more front money. If the offer is less you have to go back to the first label. Just make sure you limit the time  of the demo deal. Try to get 14 business days if possible.

Monday, June 20, 2011

Recording With Production,Producer, Mixer Deals In The Music Industry

Recording With Production

When making your own music and recording, you can record under a label, for film, or a production company. You will have to protect yourself in the contract so here is what you do. Put a clause in your contract that says the independent must agree to distribute your records within a certain period of time. Six months in the proper time to release your album.  If you have a little bit of clout make sure that  the company distributes your album with a major distributor. You can actually get approval from the major distributor. A big one is to make sure that lets say your deal wit an indie is two albums firm, but the distributor drops the indie label after one album. Get a guaranteed release or you can terminate the deal if they hold on your second album if you have a two record firm deal. Make sure you get a six month release or terminate the deal if you have these mentioned clauses.

What's A Producer?

A record producer combines the roles of director and producer in album making process. He or she is responsible  for maximizing  the creative process. The decide what song goes on the album, deciding arrangements, getting the correct vocal sound. What a producer makes? Just like artist, there are three levels of producers. New producers, mid level, and superstar. Producers get advances just like the artist. Here is the breakdown.

New Producer:
Makes anywhere from zero to $7,500 per master. If the the producer is doing the entire album it ranges zero to $30,000.
Mid level:
$10,000 to $15,000 per master and $30,000 to $50,000 for entire album.
Can make up to $25,000 per track and about $150,000 to $200,000 for entire album.

Hip hop a producer can make more. They are very costly. Here is a post about record releasing in the music business. Click here.
*If you want a great music making software I highly recommend. Click here.

Friday, June 17, 2011

Albums Guaranteed Release

Guaranteed Releases

A very important deal to know about as a recording artist is the release of a record. You want to make sure that a label is highly obligated to you. This is not always the case. When you first sign you do have limited bargaining power with your contract, however you can get a guaranteed release. A label can shelve your record pending the contractual agreement. Remember if you have a delivery clause, you could be in trouble. A label will shelve your record if they feel the timing or the specific sound is not the right timing. Everything is timing on what sells. Make sure you have a guarantee release in your contract. The delivery is between 90-120 days after recording. If this happens you have the right to a written notice saying that "you have not put out my album". After you have submitted the written notice the label has 60 days to release the album. If they don't you have the right to write a second notice. If they don't release within 30 days. If the record is still on hold, you can terminate the deal. The guarantee release clause only works if the record has not been released in the United States. You can negotiate a release provision for foreign territories. This is one of the most important clauses. Make sure you get a guarantee release in the United States.

The Independent Record Label

Over the last few years, deals with indie labels have become more prevalent. This is because lots of big wigs from the major go off and work for indie labels or create there own. Also, the major labels are signing less and less artists. Also, indie labels have better bands and solo acts. Commercial bands lack substance and just put out what sells to a younger audience which buys the majority of the albums these days. The good thing about the indie labels is that the deals with artist are looking more like the major deals. This is a plus when making your own music.  If you sign with an indie label, you will get less of an advance than from a major. If you are willing to take a small advance they can offer you %50 of all profits instead of royalties. Make sure that your albums gets released when you are signed with an indie. Indies also want a big chunk of your merchandise rights. This is called a "360 Deal". I will talk about that later. Another clause to watch out for is a "label management fee". This is just another way for them to make money off of you. Make sure that the percentage is very low, or put a maximum limit on what they can take. Indie's will try to take away your manager. Again, a way to get another 15% off of you. Tell them, no way, stay away from my team members. You always have control of your team. Indie's will want to grasp of your publishing rights as well. This means anything you make as a songwriter as opposed to a performer.

*I make daily suggestions on products. This music making software is one of the best on the market. Click here.

Thursday, June 16, 2011

Greatest Hits Albums

Greatest hits albums are a compilation of songs from your albums prior.

Greatest Hits Advances

You should be able to get an advance for your Greatest Hits albums. The amount of the advance will depend on how much bargaining power that you have. A new artist on a major label will be 75k less the unrecouped deficit. If you are a mid level, the deal with often have a "floor" on the Greatest Hits advance regardless of the deficit. This is how it works:

1. If the artist was recouped, the advance would be $400,000.
2. If the artist was unrecouped $100,000, then $400,000 minus the $100,000 deficit equals a $300,000 advance for the Greatest Album.
3. If the artist's was $350,000, then $400,000 minus the $350,000 deficit equals $50,000, but the floor is $150,000, so the artist would get a $150,000.

New Songs for Greatest Hits

Now and days it is becoming more common for companies to require two or three new songs for Greatest Hits released during the term. This is good for everyone because a hit single will pump up your sales on Great Hits album. You will get a higher advance for Greatest Hits album with new tracks on it when making your own music.

*If you want to record at home, this is a great software. Click here.

Wednesday, June 15, 2011

Music Industry Stress

Music Industry Stress - How to Reach Creative Flow When You're Out of the Jet Stream

Expert Author Lance Winslow
Well, I live in one of those resort communities, and a very politically conservative area, however, in many of the cities near here there are folks who are extremely liberal, and many of them come from industries such as the entertainment sector. In fact, I've met movie stars, TV stars, and even rock stars in the Valley here. Some come on vacation, summer snowbirds, and some live here all year round now in retirement.
Often, I will go to Starbucks and hang out, and talk to the various individuals who stop by, and they are either ultra-conservatives or creative types. I find both groups quite fascinating and fun to converse with. Not long ago, I was talking to the son of a former rock star, and I'm not going to mention any names because that wouldn't be appropriate, but he has his own band now, and hopes to follow in the footsteps of both of his parents who are/were in the music industry.
We were kicking around some creative ideas, as he seemed to be quite stressed out, and trying to get back in the creative flow, apparently he was having the musical industry's version of a writer's block. Over the years I've consulted with various creative folks, and I gave him some advice. Below are some things that often work for highly creative musicians who were trying to get back in the flow.
1.-Take your favorite songs, no more than three and play them at the same time, turn off the lights, and listen, and you will find new amazing combination between the noise, if you listen. If you are writing rock music, then go by a tiny White Russian bottle or just take some Kahlua and poor it into a Starbucks Frappachino 20-minutes before and drink it, while reading the lyrics to your favorite songs.
2-If you are writing slow love songs have two glasses of wine at 3 AM in the morning and do the same thing.
3.-If you are writing classical music or composing, then spend the whole day only eating pure protein type foods, sleep for 4-hours in the middle of the day, totally rested up, and then start writing at 10 PM, and do the same thing, and by 5-6 AM you will have written a master piece.
Now then, I'm not sure if he followed any of my advice, and I haven't seen him back at that particular Starbucks sense, but he seemed quite willing to try something new, and even if this technique may not be the best for him, he believed it would work, and I believe that's half the battle when dealing with a creative genius trying to get back into the creative flow. Indeed I hope you will please consider all this and think on it.
Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. Lance Winslow hopes you've enjoyed today's discussion and topic. http://www.WorldThinkTank.net - Have an important subject to discuss, contact Lance Winslow.
Article Source: http://EzineArticles.com/?expert=Lance_Winslow

Article Source: http://EzineArticles.com/6345917
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Tuesday, June 14, 2011

Delivery Requirements Under Contract

Today I will discuss delivery requirements for your album under contract.

Delivery Requirements

Apart from the numbers of your recordings, contracts also talk about the kind of recordings you can delivery. Delivery means much more than just dumping material to someones doorstep. It means the company accepts the recordings as complying with your deal, and the contract will specify what standards the label can use in deciding whether to accept. These standards depend on your bargaining power. Two major requirements are

1) Commercial Satisfactory
This basically means that the label will take recordings that they believe will sell. Records that the label really likes. This will be in your contract as well. If you have not delivered a good album that is required by the deal then the label can terminate your contract.

2) Technically Satisfactory
This means if the record is produced as is high quality technically, then the label has to accept the recording if under contract. This clause is very rare, because it is all about money and how many millions the label can make. The label rather have a average making album that sells than a high quality made album that doesn't sell.

Controlled Composition

One of the most important provisions when making your own music. This limits how much you can make as the songwriter. This means you and your lawyer need to know the extensive knowledge of publishing. I will get into that another time.

If you want to record at home and save money, I recommend a great music making software. A great software for under $30. Click here.

Monday, June 13, 2011

Mega Record Deals

Mega Deals

Over the past several years there have been what is called "mega deals" in the music industry. Names like,
U2, R.E.M., Madonna, Prince, Micheal Jackson, etc. These contracts are multi-million dollar deals. So what is the actually truth behind the deals and how to obtain a contract such as this? You need to have a long run and be consistant selling millions of albums and selling out concert tours for years. Remember that record labels take options on mew artist up to eight albums. The other reality is that most new artist deals have low end royalties and advances or, at best, are in the midrange. As soon as an artist has big success, they will demand more substantial advances and royalties. If both parties agree on a contract like this the record company wants more albums. The fact is that the record labels continue to extend the deals, and artist rarely end up in a position to change labels. This is the reason why artists tend to spend their entire career at one company.

The Mega Deals Three Big Clauses

When making your own music, there are three major clauses in the mega deal.

The advances are in the multi-million dollar range. At this level, the deal becomes a big banking transaction-the record company makes its best guess as to what the artist will sell and then computes its potential profit against the risk factor.

Superstar royalties tend to be over 20%.

The amount of product in a mega deal has two big aspects:
A. There will be many more firm albums, three or four.
B. The total amount of product tends to be less. A superstar owes a lot of product to the existing label, but the deal is with a new label. The label will get fewer albums than a normal deal.

Mega deals tend to be less than reported in the press. Also, a number of the deals, involving not only a record deal but also a publishing company, film projects, and merchandising. This is my post for today.

*I mention daily great recording products. This is a product I highly recommend. It is a music making software. You can record at home and save money on recording costs from a studio. Click here.

Sunday, June 12, 2011

New Artist Deals

Fresh New Artists, Bands And Deals

New artists and bands these days are seeing commitment from labels to do only one album or sometimes just two or three master recordings. Label now insist on getting a total  of five or six album over the course of the contractual deal. In years past, labels wanted options for eight to ten albums a deal. Recently, the labels now commit to two albums at the beginning of the deal. This term is called two firm. This is how it works. If the first album sells less than 150,00 units in the United States, the label is no longer committed to the second album. So make sure the first album is a seller and doesn't tank.

Minor League And Farm Teams

In sports this is referred to as the developmental league. Meaning if a label likes your material but the band is just not ready for the big leagues. Your contract is referred to as a demo deal. This work by the record label spending very little money on your album. Recording costs usually. Demo is a short term for demonstration
recording. The label records you for a demo deal, and executives site around and discuss and decide if they want to sign you to a major deal. If they decide yes, the next step is then sign you to a regular deal. A developmental deal is the same as a demo deal, except the record label spends more money say $50,000. The difference is they will record a couple of master copies. Unlike the demo deal, the recoding contract is pre-negotiated so you can transition smoothly.

Minimize Options In Your Contract

The more options, terms, and clauses that are in your contract the worse it will be for the band or artist. These are added by the label to protect themselves from losing money and if you are a bust you will not see any money. A lot of options give the power for the record label to get out of your deal. This is never good for you. Keep the contract straight and to the point. Negotiate the best you can. So many options in the contract are never good for you at all.

Term And How Long?

When making your own music, the record company keeps you under an exclusive agreement called the term of your deal. In past years the term of your deal use to be a year, with options to renew for additional periods of one year each. These segments are called periods. Artist or bands would usually deliver two albums each year.

Next post, I will continue more about the artists deals.

* Each post I highly recommend a product that will help artists in recording. If you want to save money and record at home with a high quality recording product. This is a great music making software that is one of the best on the market! Click here.

Saturday, June 11, 2011

Record Label Advances

Album Advance Formula

Today, I will get more into record company advances. A term that most record labels agree on is what is called a formula for advances. This is a mechanism that is designed to increase or decrease your deal if you are a success or a flop. So it works like this: Your bands advance for the second album is equal to a percentage that is usually 60% to 70% of all royalties earned by the first album under the contractual agreement. The advance for the third album is a percentage of of album number two's earnings, and so on. For an example, if album number one earns say $1,000,000 in royalties and you have a 60% formula, the advance for album number two is $600,000. Usually the formula percentage is based only on earnings in the United States and Canada. The earnings also have a time limit on what you can earn. After release of the album you have anywhere from six to eighteen months. Their are some variations including delaying the formula until the third album averaging earnings of the previous two albums as opposed to using the earnings only of the previous one.

Floor For The Formula

Say your first album is a dismal failure, and it earns only $20,000. How can you make an album for $12,000 to $14,000 (60% to 70% of the $20,000)? Well, you just can't, so this situation is handled by establishing a floor for the formula. The floor means no matter how terrible the earnings of the previous album, the fund will be no less than an agreed amount (floor). When artist receive an advance, the formula percentage is of course much less, about 15% to 20% range.

*I highly recommend this music making software. A great product for recording at home. Click here.

Friday, June 10, 2011

Royalties And Deals

Real Life Numbers And Escalations

It is very common to escalate royalties based on sales of records. Your royalty point usually goes up after certain amount of how many units are sold. For example, if your royalty is 12% it can go up to 13% for sales over 500,000 and 14% for sales over 1,000,000. The labels have put a cap on escalations which is maxed out at 19-20% range.

 "All In"

This means that the artist or band is responsible, out of his or her royalty, for paying the record producer and mixer. Producer are paid a U.S. royalty  in the range of 3% to 4% of PPD. If a producer becomes very successful they can demand 5-6%.


Back in the old days, artist would go to the studio, sing their butts off, and have nothing to do with the creative process. In those days the label set aside $10,000 for an album. The label paid all the recording costs. Remember that this is recoupable from royalties, just like an advance. It took two weeks to do an album back then. This was in the 1950's. Oh things have changed.


Today, most recording agreements are structured as funds. A fund is a set amount of money, which includes
both recording costs and any amounts that may be payable to the artist as an advance. Whatever the artist or band doesn't spend on recording costs goes into his or her pocket when making your own music.

1. New Artist Signing to Indie:
 You could get zero to $300,000. This sounds like a huge range, but this is based on if you want a bigger advance and a smaller royalty. Don't expect the $300,000. This is very rare. A majority of the advance ranges from $25,000 to $100,000.

2. New Artist Signing To Major:
It your a rock band the range is $175,000 to $300,00 but can be $500,000 if you are hot and wanted.

Mid level:
$500,000 to $750,000 but if you are particularly hot, it can kick up to $1,000,000.

You will get a minimum of $1,500,000 and up. At this level, funds are computed on the basis of your past record sales and future expectations and bidding.

This is all for today. Here is a great music making software! Click here.

Thursday, June 9, 2011

Making Your Own Music-What Level Is Your Clout?

What Level Is Your Band's Clout?

I am going to post today about your band's clout and what this all means. This is not so much a big deal if you are new and just beginning in the recording business industry. This really means what kind of bargaining power you are going to have at the table. There are basically three levels that you should be concerned about when making your own music.

New Artist

This is a band or artist that is fresh and new and had never before had a record deal, or someone who has signed before but has never sold over 250,000 copies of there albums per release. This also means that an artist once successful but somehow lost his or her following and is finding it difficult to catch on with a label.

Mid level Artist Or Bidding Artist

(1) This level means that your last album sold 500,000 to a 1,000,000 copy range. (2) You are a new artist or band and have various labels interested in you. Knocking your door down. This is a rare occurrence.

Superstar Level

This comes down to the number of albums you sell. To reach this level the number is a minimum of 2,000,000 copies to unlimited. If you are between 1,000,000 and 2,000,000 your deal will be what is called a "Mid level Plus".  A deal that is in between mid level and superstar.

Variables And Combination Of Level

Here are a few examples of how some of the combinations work on this clout level. One example could be if you are a mid level artist and several labels are out bidding each other up, which means you will get a superstar level deal. On the other hand, you might be a successful artist that is clueless and naive and not get that superstar contract. Just have a great lawyer. 

I will give a point of reference on album status. A gold album is one that sells 500,000 U.S. units, and a platinum album is one that sells 1 million U.S. units. The sales figures are certified by the RIAA (Recording Industry Association of America). This organization is made up of record companies.

Range Of Royalties For Three

New artist status gets 13% to 16% of PPD. Mid level gets 16% to 17%, and superstar level gets 18% to 20%. If you reach the superstar status you can do a off-center deal or a distribution deal where the artist owns the masters. PPD is the wholesale price of a CD. If your royalty rate is 15% and the wholesale price is $12.05. You multiply the two and you make $1.81. Interested in making your own music? Click here.

Wednesday, June 8, 2011

Making Your Own Music-Royalties And Recoupment Part Two

A Method Called Cross-Collateralization

Today's post is what is something called cross-collateralization. You are thinking to yourself, what is this? Sounds a bit confusing. This term is built into every and any record deal out there today. Let's say that you get $200,000 for your first album. plus another $200,000 for the second album. Now let's say that you make
$20,000 in royalties on album number one, and album number two earns $220,000 in royalties. If the two albums are not cross-collateralized, you would get nothing for album number one earned only earned back $20,000 of the $200,000 advance, so it's $180,000 unrecouped. This would be a deficit and carries over to the next album.

Cross-Collateralization Of Deals

This can also refer to different types of agreements in your contract with the label. These can be simultaneous agreements. Let's say an artist signs a recording contract and publishing agreement with the same company. This means that advances under either agreement can be recouped from royalties under both. This is very bad for the artist or band. Major labels don't usually try to do this in the contract combining
record deal and publishing deal. Small label or indie's will try this method. An untrained eye can miss this. Make sure your lawyer catches this condition. It says that advances can be recouped form royalties payable, and royalties can be used to recoup advances paid under this or any other agreement. A record contract is very complex and the average Joe will have no clue what 99% of the contract means. Take your time and don't just sign a contract unless you understand everything. Have you lawyer explain everything clearly.

If you want to record at home, here is a great music making software to use. I highly recommend it. It is very inexpensive and is a great tool. Click here.

Tuesday, June 7, 2011

Making Your Own Music-Advances and Recoupment

Advances For Bands And It's Basic Concept

Today I will discuss how advaces for bands or a solo artist works when you sign to a record label.
This is a bit deifferent form say when a professional athelete signs a contract. I will get into the differences in a bit. I will mentioned it now so here we go. An advance works when the label gives you a bunch of money right on the spot when you sign with them. There are many terms but I call it "upfront "money". Let's say you get a million dollars upfront. It works sort of like a loan. The label will than keeps your first million dollars you earn through all income and royalties until that million is recovered. This is called "recoupment". If you hace an amount of money that has not been recovered is your deficit or called red position. It is as simple is that when making your own music.

Other Details To Know About Recoupment

Monies paid directly to the artist or band are not the only recoupable monies. Recording costs are also considered recoupable from your royalties, and some portions of video production costs, independent promotion such as, monies paid on behalf of the band or artists to buy equipment or to support a personal appearance. It is not just recording time. Equipment rental, travel, arranging instrument transportation, etc. There is something called a union scale that means the minimum amount a union requires everyone to pay all it's members paid to you and others that perform at recording sessions. A contract will have general provisions that indicate all amounts paid to you or on your behalf or others in connection with the agreement are recoupable unless it states otherwise.

Next post I will get into more about recoupment and some other terms that you need to be familiar with.

Monday, June 6, 2011

Making Your Own Music-CD Royalties

Compact Disk Royalties

Today I will discuss more about royalties and how they are computed today. Record companies decided to go to a newer system which was implemented in 2006. Older contracts involved royalties on cassettes and not CD's. This is not entirely true. When compact disks came out they were super expensive to manufacture than cassettes so in turn the record labels paid a lower royalty out to the artists. There was no set percentage. This had to be worked out in the negotiation process.

1. Your royalty rate for compact disk was however a reduced  percentage of the cassette rate.

2. The computation of the suggested retail list price for CD's varied from company to company. A majority of the the companies use what is called the uplift of the wholesale price, meaning they multiplied the wholesale price by a percentage usually being 130% for the major labels. So let's say the wholesale
price is $10, the uplifted price would be $13. This is 130% of $10. Your royalty rate would be applied to the constructed retail price or new price.

3. The packaging deduction for CD's was 25% as opposed to 20% for cassettes, and 10% for vinyl.

*Here is some info form the past that does not exist today. Their was a time that artists only got 90% of net sales because records were made of shellac and were easily breakable. So the record labels developed a practice for paying on 90% of the shipment and keeping the remaining 10% to cover there breakage. This was one of many ways to nickel and dime the artist.

Friday, June 3, 2011

Making Your Own Music-Quality Of Music Today

Today's post I am going to get off track and shift my attention from royalties to what has happened to the lack of quality in commercial music today. This topic really hits me hard personally when I hear some of the crap on the radio in today's industry.

Music Business Is Run By The Big Media Corporations

Media in America is a monster and very powerful in today's society. Media takes a specific concept on how to entice the majority of our society. This is what happens in music. The media world has made a huge impact on everyone. As I seen it, I look at media and major record labels as nothing but one big mega marketing company. They push what ever they want down your throat. The concept of shoving image and messaging time and time again has become a multi-billion dollar cash machine.

What Ever Happened To Artist Control

Artists and bands rarely have control of music. What I mean is that once again the labels control and limit your artistic freedom in producing your own music. Do you know that when an artist goes into the studio nothing rarely stays the same. Producers make changes not for the quality of the music being produced by what sound and lyrics that sell and make the labels money. This detracts from quality and the focus shifts far away from great music. Just one of many examples is the country genre. Most major artists have writers that submit songs to the artist and don't usually produce there own music.

Music For The Masses

If you look at statistics on the demographics, who is buying the majority of records. The biggest age group are young people ages 16-25. These are the Jonas Brothers and Lady Gaga fans. Sorry, but that music is just terrible. This type of music is trite, boring, repetitive, and lacks substance. Image is a major factor in selling music. This has become and big marketing tool for the media and record labels. Music should be like a great piece of literature. It should make you think and make and effect on your soul. I can't name one artist today that does that. Music styles and trends seem to change and I can't wait for real music to come back and the industry shifts it's efforts on substance and not image. I could go on about the lack in quality in music. This post is just my opinion. I beg the industry to get back to quality so I can turn my radio on again.

Thursday, June 2, 2011

Making Your Own Music-Money And Royalties

Royalties And Money

Now I will get to what is the big one. The money side of your bands royalties. The proceeds between the bands/artists and the record companies is a bit complicated and very detailed. I will mention here how computations use to work, and how it is structure today. The reason being that some deals today use the older structures which is the older system. So, I am going into the math side of this which you must know as a band or artist.

1. The artist royalty is a percentage of the wholesale price. This is referred to as PPD which means published price to dealers. Sometimes it is referred to as BPD, base price to dealers. Each royalty percentage is know as a point. Let's just say if you have 20% royalty, you would have earned 20 points. An example would be say CD wholesale price is $20 times 20% equals $2. This is the simple math to understand it. Royalties are paid for every single record sold. Keep in mind every record sold. Companies do give away free goods, known as special free goods. This free goods started when companies wanted to push a big amount of albums. To get the record stores to stock a lot of the records they may give away say 5% or 10% of all records shipped. Free goods are consider discounts but still cost the record company money so they don't count as royalties.

Making Your Own Music And Promotional Copies

Records that are given away for promotional purposes like radio station copies are also free goods. These are actually marked as "not for sale". These copies are strictly for DJ's and the radio station. So, the artist and the record labels don't make a dime on these marked promotional copies.


Records are only sold on a 100% return privilege. This means if the record shop can't sell them they can ship them back and get a credit or refund for the albums that didn't sell. The reason for the return is so the record stores don't get stuck with product they can't sell. Remember that a record stores space cost them money because they pay rent for the space.

Next post I will talk about more on royalties with albums. If you want to record at home click here for a great music making software.

Wednesday, June 1, 2011

Making Your Own Music-What A Record Is?

This post I will discuss what a record is when making your own music. As simple as it sounds, the answer to what a record is, not what you might expect. The term record is a compact disk with music on it. It also includes pre-recorded cassettes and vinyl disk that are dead. Since the 1960 their is an on going argument of a definition of what a record is. A record is both an audio-only and an audiovisual device(meaning one with sound and visual images), such as videocassettes and DVD's, which play video as well as audio material. Another definition is any other device that is capable of transmitting sound alone, or sound with visual images. Back in the day records were not duplicated in mass amounts. Records were made by musicians and singers perform for each record that was actually sold. Just think how much work that would be if you sold say two million albums back in the old days.

Making your own music a big factor in creating a record is the master

The term master has two meanings:

1. The original recording made in the recording studio is called the master, because it is the master from which all copies are made. Master recordings are now done mostly on computer hard drives. These recordings are a multitrack, meaning that each instrument and voice part is recorded on a separate track or channel. Drums on one track, guitar on another, voice on another, etc. When this process is recorded then the master is edited, mixed, and EQ'd. Just like in films, editing means to cut out the parts that you don't like. Mixing means getting the right level for each track, so that every instrument or part are at the correct volume. The sound can also be enhanced by the EQ process. The mixed multitrack is then reduced down to a two-track stereophonic master, which is then ready for the duplication process. So basically there are two maters-the original multitrack, and the finished two-track.

2. The word "master" also means a recording of one particular song. Thus, you might say an album has "ten masters", meaning ten separate selections. These individual recordings are also called "cuts".

Next post I will discuss royalty computation. Making your own music at home, click here.